Microsoft’s carbon removal plans aren’t dead after all
Microsoft has signed a deal to purchase 650,000 metric tons of carbon removal credits from BioCirc, despite earlier reports suggesting a pause in its carbon removal initiatives. This agreement is significant as Microsoft plays a major role in the carbon removal credit market, influencing the survival of startups in the sector. The deal indicates a recalibration of Microsoft's carbon removal strategy rather than an abandonment of its sustainability goals.
- ▪Microsoft is buying 650,000 metric tons of carbon removal credits from BioCirc.
- ▪The purchase agreement was signed in May, despite reports of a pause in Microsoft's carbon removal deals.
- ▪Microsoft is responsible for over 90% of the carbon removal credit market, impacting many startups.
- ▪The new deal involves carbon removal credits generated from five BioCirc biogas projects.
- ▪Microsoft's sustainability goals are challenged by its expansion into AI and fossil fuel power plants.
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| Original publisher | TechCrunch |
| Canonical URL | https://techcrunch.com/2026/05/20/microsofts-carbon-removal-plans-arent-dead-after-all/ |
| Publication time | Wed, 20 May 2026 20:30:24 +0000 |
| Retrieval time | 2026-05-20T20:35:03.014Z |
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Opening excerpt (first ~120 words) tap to expand
Microsoft is purchasing 650,000 metric tons of carbon removal credits from startup BioCirc, the company said today. As carbon removal deals go, it’s not a big buy. But this one is notable because last month, two reports said the tech giant was pausing its carbon removal deals. BioCirc confirmed for TechCrunch that the purchase agreement was signed in May, weeks after Microsoft reportedly paused new deals. For the carbon removal industry — and the startups that depend on it — there’s a big difference between a pause and a recalibration. Microsoft is reportedly responsible for more than 90% of the carbon removal credit market, meaning its purchasing decisions alone can determine whether young companies in the space survive.
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